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  1. #1
    fearsome foursome is online now Registered User
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    A question for the Clan

    If you took the sports aspect out of it would the new owners be better off with a less valuble franchise? If they plan on keeping the team will they have to pay inheritence tax on the "value" of the team? It seems there is a lot of lip service being paid right now to winning but not a lot of obvious effort.(head coach). I guess I just can't get that movie "Major League" out of my mind. note;I am not a conspiracy theorist.
    Last edited by fearsome foursome; -09-12-2008 at 10:30 AM.


  2. #2
    HUbison's Avatar
    HUbison is online now Superbowl MVP
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    Re: A question for the Clan

    Quote Originally Posted by fearsome foursome View Post
    If you took the sports aspect out of it would the new owners be better off with a less valuble franchise? If they plan on keeping the team will they have to pay inheritence tax on the "value" of the team? It seems there is a lot of lip service being paid right now to winning but not a lot of obvious effort.(head coach). I guess I just can't get that movie "Major League" out of my mind. note;I am not a conspiracy theorist.
    That's a fair question. The inheritence taxes have been phased out by most states (though I honestly don't know about Missouri nor California tax law) which leaves Chip and Lucia in the clear most likely, but the federal estate tax is still in effect (to the tune of 45%.....OUCH) which falls on the executor of the estate to pay, but in function I don't see a clear difference.

    As to the question of value, I believe the estate tax is assessed (ie. fair market value of estate is established first) before the receipients get their inheritence. So, without knowing all the details, I would think the fair market value closest to time of death would be the assessable value for tax purposes.

    Therefore, any depreciation of value at this point would actually hurt the estate IF the team ownership is to be used as proceeds to pay the tax.

    The estate is currently looking at about a quarter billion of tax. I don't see how the kids don't sell the team to raise that, but they would actually do better to drive the value UP in order to generate as many funds as possible.


    P.S. If one were to pick a time to die, do it in 2010. That year and that year alone, the estate tax goes away.
    Last edited by HUbison; -09-12-2008 at 10:53 AM.
    "Before the gates of excellence the high gods have placed sweat; long is the road thereto and rough and steep at first; but when the heights are reached, then there is ease, though grievously hard in the winning." --- Hesiod

  3. #3
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    Re: A question for the Clan

    dont know how it works dude/dudess..im guessing most teams are about the same in value than the others throughout the NFL..maybe teams with the new state of the art stadiums are worth more but apart from them,.

    personally,i think Chip and sis will eventually sell to Stan Kroenke and they`re just sorting out the hurdles that are there from him currently owning the Nuggets etc...

  4. #4
    fearsome foursome is online now Registered User
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    Re: A question for the Clan

    Hub, thanks for the reply. It makes sense. I remember that there were tax issues that had something to do with the O'Malleys sale of the Dodgers.(RR It's Dude to you)

  5. #5
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    Re: A question for the Clan

    Quote Originally Posted by fearsome foursome View Post
    If you took the sports aspect out of it would the new owners be better off with a less valuble franchise? If they plan on keeping the team will they have to pay inheritence tax on the "value" of the team? It seems there is a lot of lip service being paid right now to winning but not a lot of obvious effort.(head coach). I guess I just can't get that movie "Major League" out of my mind. note;I am not a conspiracy theorist.
    1. You can't take the sports aspect out of a sport franchise.
    2. I can call my mother in law who works for the IRS.
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  6. #6
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    Re: A question for the Clan

    Regardless if you call it the "Death Tax" or Inheritence tax, Value over a professional team is relative...But regardless $$$ are paid out of the estate. But since the world is run by lawyers and accountants, am more then sure that when neccassary they can "lower" the value to avoid taxes, and raise values when they want to sell more shares or share value
    Anyone ever hear of ENRON?

    However, if and or when the Rams are sold, CAPITAL GAINS tax is a reality.

    Would the current ownership want a diminshed return on revenues? Definately not. Fact is there are several constants. First, there is the cost of running the team, player's salaries, etc. Those expenses get paid first before the owners get their slice of the pie. The expense of maintaining the team are a given and reduced revenue makes for a smaller slice of the pie for the owner. Second like a house, the team is an asset which one can get loans against...the less valuable the asset the less lending potentual.

    The problem with the Rams is that ownership is too divided--all parties have a say as yah or nay on the sale. So do the current owner's want to sell?

  7. #7
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    Re: A question for the Clan

    Talked with my mother in law.

    They will certainly have to pay taxes on a sale, it is all about probate, and Georgia did not leave much, other than the franchise.

    Big taxes. I could break it down, but heading to bed so my (I LOVE SLEEP BODY), can have a fresh pot of java in the AM.

    I hate mornings, but will be dawning my gear and tivo'ing it for the hubby that needs to be in San Fran at 4:00 am.
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